Forward

A forward is a financial agreement between two parties to buy or sell an asset at a predetermined price on a future date. It's used primarily to hedge against price fluctuations or to secure a specific price for trading. Unlike futures, forwards are private contracts negotiated directly between the parties, which means they can be customized. They are commonly used for commodities, currencies, or securities to manage risk or lock in prices, helping both buyers and sellers plan ahead with more certainty about future costs or revenues.